Collision insurance is an important type of auto insurance that is often overlooked. Collision coverage is critical for truck drivers because of the high number of vehicular accidents that trucks get involved in each year.
Data from the Bureau of Transportation Statistics showed that there were 6,734,000 highway crashes in the year 2018. A large chunk of the said crashes involved large and light trucks, composing of a total of 5,201,000 highway crashes.
According to the Centers for Disease Control and Prevention (CDC), more than 1 in 3 long-haul truck drivers have experienced a serious truck crash in their professional careers. Around 800 occupants of large trucks die each year because of crashes.
Aside from the injuries and loss of lives as a result of highway accidents, crashes also result in damage to the trucks involved. Having the proper auto insurance policy can help cushion the financial strain and cover damage for business owners.
Some truckers wonder why they need collision insurance covered when they already have comprehensive insurance.
Collision insurance is not required by law which makes some drivers think that it is alright not to have it. Although collision insurance is not a requirement, it's highly-recommended for truckers and trucking companies.
This insurance provides coverage in the event that a truck gets into a crash or an accident with another vehicle or object. It will provide insurance coverage for the repairs of the damage to your vehicle.
What’s great about a truck or car collision coverage is the policy kicks in even if you are at fault. When you only have liability insurance, you won’t get coverage because the damage to your car is due to your own fault.
Collision insurance applies in several situations. It is applicable when the accident involves just your truck, such as during rollovers, and it also applies when the truck collides with an object like a wall, tree, or pole.
Collision coverage also kicks in when a truck gets in an accident with another vehicle. Examples are traffic accidents or when a driver hits your car or truck in a parking lot.
One argument against getting collision insurance is when a driver already has comprehensive insurance.
Collision and comprehensive coverage are both equally important. Both types cover damage to your vehicle. However, they cover different types of damages.
Comprehensive insurance covers or pays damages to a vehicle in the event of theft, vandalism, fire, or hail. These are events not covered by collision coverage.
Having both collision and comprehensive insurances can help ensure that your vehicle is covered during any eventualities.
There are several other reasons why a truck should have collision coverage.
Trucks are expensive and getting them repaired or replaced will also be costly. If the value of your car or truck will result in expensive out-of-pocket repairs, you'll need collision insurance. Getting this type of truck or car insurance policy is even more important to those who have their vehicles on a loan or lease.
Truck drivers travel long distances using their vehicles, and most even travel interstate on a regular basis. Not to mention, truck drivers travel along high-speed and high-traffic areas. Such long and frequent drives can increase the risk of a truck driver getting into an accident.
Although having collision insurance will not prevent accidents, collision coverage helps provide a driver with the peace of mind that the vehicle is covered in case of a collision with another car, truck, or object.
Emergency repairs can put a lot of strain on a trucking company’s finances especially if the needed repairs are extensive. The out-of-pocket cost of replacing a truck can be enough to cause irreparable financial damage to a trucking company.
The average cost of collision coverage in the U.S. is around $360, but it will vary by state. This is based on the latest data from the National Association of Insurance Commissioners (NAIC). Since this data is from the year 2017, expect the average cost to be slightly higher now.
The cost of collision coverage will also differ depending on the discounts or promotions that an insurance company may offer. Fortunately, an insurance company may give trucking companies a discounted rate if collision coverage will be purchased for an entire fleet.
However, compared to comprehensive insurance, collision insurance costs more. This is due to the fact that collision claims are more common compared to claims against comprehensive insurance.
One way of reducing the overall outlay of collision coverage is by going for the highest deductible amount that a company’s budget will allow. This is even more effective if the company plans to use collision coverage only for major damages.
It is also prudent to compare the rates from different insurance companies. Doing so can help a trucking enterprise or a trucker to have more options when it comes to choosing an insurance company.
Consider not just the costs but the coverage being offered to ensure that the policy being considered will offer the best coverage at affordable rates.
One way of knowing if a trucker or trucking company is getting a good collision policy is by doing a simple computation. Check the cost of the collision coverage that appears on the auto policy’s declarations page., then add the deductible amount and the collision cost. If the sum is more than the value of the insured vehicle, this means that the policy won’t benefit the driver or the trucking company if the vehicle gets totaled in an accident.
For out-of-pocket repairs, check if repairing the damage is cheaper than the deductible that needs to get paid. If the deductible amount costs more than the repairs, it is more practical to just pay for the repairs instead of filing a claim.
No, collision insurance doesn’t come with every truck insurance policy. It is an optional policy and it is up to the driver or the trucking company’s discretion if they want to get it or not.
However, it is best to get collision coverage on top of comprehensive coverage to ensure that the truck is completely covered.
Applying for collision insurance is just like applying for other types of auto insurance. It is best to speak with a trusted insurance representative who can provide all the information about the coverage and deductibles of the collision insurance their company offers.
A guide made by the World Health Organization (WHO) about how speed affects collisions and how a driver can reduce the risk of collisions by managing speed.
No matter how careful and skillful truck drivers are, accidents could happen. Collision insurance could help ensure that damages from accidents will not financially harm your business. Getting collision insurance for your trucking enterprise is a foolproof way to ensure that your trucks have complete coverage whenever they're on the road.
Need help finding the best collision insurance coverage for you? Contact Assured Standard today!